DBRS Publishes Updated Methodology: Rating European Consumer and Commercial Asset-Backed Securitisations

DBRS Ratings Limited (DBRS) has today published an updated methodology for the rating approach of European consumer and commercial asset-backed securities (ABS) transactions. The criteria described are most applicable to revolving and amortising consumer and commercial loan transactions where the underlying pool of receivables consists of one or more large, homogeneous pool(s) of assets, as is typically the case in secured and unsecured consumer loan securitisations (including credit card securitisations) and consumer and commercial lease securitisations. In this methodology, the asset classes are collectively referred to as ABS transactions. In addition, the rating paradigm outlined in this report is applicable to transactions evaluated across all European jurisdictions. The methodology includes an updated section that provides more detail regarding the operational risk review process for originators and adjustments to loss expectations for seasoning.

This methodology, effective as of the date of this press release, supersedes the previous methodology. All related DBRS rated transactions meet the new criteria and, as a result, no rating actions will be taken.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.